Hello Traders,
NIO, the Chinese EV maker is in a corrective mode, since the high at $57.20 on November 24!
This top could be a wave „3“ top and a wave „4“ is underway. Because of the massive advance since the lows at $1.9 on October 2, it could be that a triangle is to develop with the first parts of the pattern to watch!
The stock is actually at $43.04 and is trading close to its EMA50 area at $37.20. A level that could be reached.
I have drawn an „Elliott-channel“ to show the move since the possible wave 2 low at $2.11.
Price have met the upside boundary of the channel that often is the end of the wave 3 moves in this case. If this was the wave 3, NIO can correct a 0.382 Fibonacci of the advance (from $2.11 - $57.20)!
This area is at $16.22 (Log-scale)! And if so to come, that chart would be intact (ok)! A corrective setback will come, sooner or later! And as longer it takes to develop, the harder it will hit the stock!
I think the correction is not done and it could decline to the area $35.51, what is the 0.382 Fib of the advance from $16.44 - $57.20! More corrective potential exist.
Note the EMA200 at $19.87. More often a stock will test this area of support. That means not, that NIO will do it now; but it will do so one day!
I will monitor the stock closely and update the count in the coming days!
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
The editor is invest to this stock!
NIO, the Chinese EV maker is in a corrective mode, since the high at $57.20 on November 24!
This top could be a wave „3“ top and a wave „4“ is underway. Because of the massive advance since the lows at $1.9 on October 2, it could be that a triangle is to develop with the first parts of the pattern to watch!
The stock is actually at $43.04 and is trading close to its EMA50 area at $37.20. A level that could be reached.
I have drawn an „Elliott-channel“ to show the move since the possible wave 2 low at $2.11.
Price have met the upside boundary of the channel that often is the end of the wave 3 moves in this case. If this was the wave 3, NIO can correct a 0.382 Fibonacci of the advance (from $2.11 - $57.20)!
This area is at $16.22 (Log-scale)! And if so to come, that chart would be intact (ok)! A corrective setback will come, sooner or later! And as longer it takes to develop, the harder it will hit the stock!
I think the correction is not done and it could decline to the area $35.51, what is the 0.382 Fib of the advance from $16.44 - $57.20! More corrective potential exist.
Note the EMA200 at $19.87. More often a stock will test this area of support. That means not, that NIO will do it now; but it will do so one day!
I will monitor the stock closely and update the count in the coming days!
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
The editor is invest to this stock!